Public and Private Strategies for Assisting Older Workers National Academy of Social Insurance 18th Annual Policy Research Conference January 19, 2006 Carl Van Horn, Ph.D.

Older workers are also likely to encounter involuntary job loss The aging workforce is likely to have important consequences for the American labor market Older workers may seek voluntary transitions – from full-time work to part-time work, from one field to another, and/or from work to education or volunteer activities Older workers are also likely to encounter involuntary job loss The pending wave of retirements may lead to industry-specific labor/talent shortages and human resource challenges

The Challenge to the U.S. Workforce System The nation’s public workforce system will likely face enormous pressure to meet the anticipated demand from older workers This can be an opportunity to make needed improvements

Worker Displacement – Layoffs are a Reality 11.4 million displaced between 2001-2003, of which 5.3 million were long term displaced (Source: BLS) Job dislocation has considerable costs – career disruption, wage loss, isolation, depression, loss of seniority

Older Dislocated Workers are Vulnerable Older workers tend to have lower reemployment rates and larger earnings losses Older workers more likely to drop out of the labor market altogether following displacement

Employer Support for Dislocated Workers Uneven, uncoordinated, and unavailable to many Availability of severance pay and transition services depends on the size of the company, its size, and values Trends indicate that business support is diminishing

Government Support for Dislocated Workers Workers view UI, job placement assistance, job training, and extended health benefits as important Public services have experienced reduced funding, outdated eligibility criteria, and a disconnect to today’s business needs

Reemployment Barriers for Older Workers Continued lack of employer interest in hiring older workers Employers still not engaged in pro-older worker human resource practices Ageism and attitudes toward the job abilities and prospects of older workers still remain

Public Reemployment Programs for Older Workers Senior Community Service Employment Program (SCSEP) Alternative Trade Adjustment Assistance (ATAA) Those who do not qualify under SCSEP and ATAA may be eligible for WIA services

Decline in Public Resources for Older Workers More older workers are likely to mean an increase in the need for reemployment services But fewer public resources available for employment-related services means that older workers will seek help in other places besides the public WIA system

Growth of Community Programs In the absence of any national funding, set-asides, or policy, NGOs are developing and nurturing active programs and approaches to serving displaced older workers Funding is primarily with private dollars Eligibility is more broadly defined than SCSEP

Growth in the Private Services Industry The private market has caught on to the business potential of the older worker market

How to Improve Reemployment Opportunities for Out-of-Work Older Workers Better integrate One-Stop and NGO reemployment programs with UI and other government and employer benefits Encourage the growth of community-based services and program models and services that offer a wide array of appropriate services and interventions

How to Improve Reemployment Opportunities for Out-of-Work Older Workers Develop flexible service strategies attuned to the needs of older workers Provide research and information on local promising practices and effective older worker employment strategies Provide public information and guidance on how to navigate the career transitions marketplace and protect consumers

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